A performance measurement program goes beyond just having performance metrics in place. Many companies do not realize the full benefit of their performance metrics because they often do not have all of the necessary elements in place that support their metrics. Typical characteristics of a good performance measurement program include the following:

- Metrics that are aligned to strategy and linked to the “shop floor” or line level workers.

- A process and culture that drives performance and accountability to delivery performance against key performance indicators.

- An incentive plan that is tied to performance goals, objectives and metrics.

- Tools/technology in place to support easy data collection and use. This often includes the use of a “dashboard” or “scorecard” to allow for ease of understanding and reporting against key performance indicators.

Also see: Performance Measures, Dashboard, Scorecard, Key Performance Indicator.